United Arab Emirates (UAE)

The UAE is rapidly becoming a significant player in the FX and CFDs brokerage industry, attracting companies with its growing economy and focus on innovation. The UAE’s strategic location at the crossroads of Europe, Asia, and Africa offers access to a diverse and expanding client base. Depending on your chosen Emirate, either the Dubai Financial Services Authority (DFSA) or the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) oversees FX and CFDs activities. Both offer robust regulatory frameworks.

The UAE regulators are known for their focus on attracting foreign investment and fostering a business-friendly environment for the financial services sector.

Developing Reputation: The DFSA and ADGM FSRA are well-regarded regulators with a growing international reputation. Their commitment to transparency and compliance is attracting attention.
Tax Benefits: The UAE offers a competitive corporate tax rate of 0% (in certain Free Zones) and tax exemptions on certain financial transactions.
Advanced Infrastructure: The UAE boasts a well-developed infrastructure, including state-of-the-art technology and strong communication networks.
Multilingual Workforce: The UAE has a diverse and multilingual workforce, ideal for serving a global client base.

Get in touch with us to learn more about Heaving a FX CFD license in the United Arab Emirates

Jurisdiction: United Arab Emirates (UAE)
Regulator: Dubai Financial Services Authority (DFSA) [Independent regulator of the DIFC free zone]; Abu Dhabi Financial Services Regulatory Authority (FSRA) [Independent regulator of the ADGM free zone]
License Name: Category 4; Category 3A
Products Allowed (CFD on all/certain assets): FX and CFDs
Activities Allowed (Broker/MM): Arranging Deals in Investments and Advising on Financial Products (with Retail Endorsement); Market Maker & Broker
Passporting: N/A
Leverage Limitations: Yes, similar to EU/ESMA's rules
Structure requirements (#shareholders / director/officers, MLRO): Senior Executive Officer (SEO); Finance Officer (FO); Compliance Officer (CO); Money Laundering Reporting Officer (MLRO); Internal Audit; Risk Officer; Data Protection Officer; External Audit
Basic requirements (business plan, website. demands from UBO, professional background: Detailed business plan incl. 3 years financial forecast; UBO must have solid financial soundess and source of funds (must be able to show he can sustain the business for its initial years of operation); All mandatory functions must demonstrate sufficeint experience and qualifications as all will be vetted and approved by the Regulator.
Local Physical Presence (Local Office and Local Staff): Local Office; Senior Executive Officer (SEO) [Must be a resident in the UAE]; Finance Officer (FO) [Does not need to be resident of the UAE; Can be outsourced]; Compliance Officer (CO) & Money Laundering Reporting Officer (MLRO)[Must be a resident in the UAE] ; Internal Audit [Can be outsourced]; Risk Officer [Does not need to be resident of the UAE; Can be outsourced]; Data Protection Officer [Does not need to be resident of the UAE; Can be outsourced]; External Audit
Insurance: Professional liability insurance is mandatory
Clients' Funds Segregation: N/A; Mandatory (must open 2 bank accounts - 1 Corporate and 1 for clients' funds)
Corporate Income Tax Rate: 0-9%
Minimum Capital Requirement: $30,000; Broker – $500,000 USD; Market Maker – $2M USD
Time Frame for License Issuance (as of submission): 3-6 Months
Regulatory leniency level (basic, intermediate, complex): Intermediate; Complex
License Validity: No expiry date
Reporting Frequency (Monthly/Quarterly/Annualy): Periodic reports; AML and Compliance Reports; Annual Audited Financial Statements

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